Bell Corporation purchases all of the outstanding stock of Stockdon Corporation for $220,000 in cash on January 1, 2017. On the purchase date, Stockdon Corporation has the following condensed balance sheet:

Any excess of book value over cost is attributable to the building, which is currently overstated on Stockdon’s books. All other assets and liabilities have book values equal to fair values. The building has an estimated 10-year life with no salvage value.
The trial balances of the two companies on December 31, 2017, appear as follows:

Required
1. Prepare a determination and distribution of excess schedule for the investment. (A value analysis is not needed.)
2. Prepare the 2017 consolidated worksheet. Include columns for the eliminations and adjustments, the consolidated income statement, the controlling retained earnings, and the consolidated balance sheet.
3. Prepare the 2017 consolidated statements, including the income statement, retained earnings statement, and balance sheet.

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Assets Liabilities and Equity Cash. . Inventory Land. Building (net) $60,000 Liabilities ..$150,000 40,000 Common stock ($10 par).. 100,000 50,000 100,000 20,000 Paid-in capital in excess of par 180,000 Retained earnings. Total assets. $400,000 ilities a Total liabilities and equity $400,000 Bell Stockdon Cash nventory Land Building (net) Investment in Stockdon Corporation Accounts Payable. Common Stock ($3 par Common Stock ($10 par) Paid-n Capital in Excess of Par Retained Earnings, January 1, 2017... Sales.. 180,000 60,000 120,000 143,000 30,000 120,000 162,000 220,000 405,000) 300,000 (210,000! (100,000] (180,000) (50,000) 255,000 100,000 210,000 (40,000) 35,000 10,000 Other Expenses.. Dividends Declared. . . 120,000 45,000 5,000 Totals 0